Sell Kapas APR @ 1580 SL 1590 TGT 1570-1560. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices fell by 0.41% to 53,940 amid profit booking, following recent gains driven by tightening domestic supply estimates. The Cotton Association of India (CAI) has revised down its production forecast by 4 lakh bales to 291.30 lakh bales (170 kg each) for the 2024-25 season, primarily due to lower output in Maharashtra. The previous estimate stood at 295.30 lakh bales. The total cotton supply till the end of March, including imports and opening stock, is pegged at 306.83 lakh bales. This includes 25 lakh bales in imports and 30.19 lakh bales as opening stock. Stocks at the end of March are estimated at 127.83 lakh bales, with 27 lakh held by mills and the remaining 100.83 lakh bales with the Cotton Corporation of India (CCI), Maharashtra Federation, and traders. CAI projects cotton exports at 16 lakh bales for the 2024-25 season — significantly lower than the 28.36 lakh bales exported last year. Closing stocks for the current season are expected to drop to 23.49 lakh bales from 30.19 lakh bales last year. As domestic production shrinks, India’s cotton imports are expected to more than double to 33 lakh bales, up from 15.20 lakh bales last year, with 25 lakh bales already arriving at ports by March. Technically, the market is under long liquidation with a drop in open interest by 8.7% to 189. Cottoncandy has support at 53,740, with further downside likely to 53,530. Resistance is seen at 54,230, and a breakout could push prices to 54,510.
SELL COTTONCANDY MAY @ 54200 SL 54500 TGT 53800-53500. MCX
COCUDAKL
SELL COCUDAKL JUN @ 3040 SL 3070 TGT 3010-2990. NCDEX
KAPAS
SELL KAPAS APR @ 1580 SL 1590 TGT 1570-1560. NCDEX
